The plant was originally built by a PGE subsidiary and has been part of the Beaverton Round development project since the first buildings were completed in 2002. PGE ownership changes in 2004 caused instability about the subsidiary’s ability to continue to provide heating and cooling services to the plant’s customers. The city recognized the value of the plant to the project, the importance of its energy-efficient delivery of heating and cooling services, and the need to assure those connected to the system would continue to receive services. With those factors in mind, the city purchased the Central Plant to provide stability to the entire development at The Round.

The city had no up-front, out-of-pocket costs to acquire the plant. The city did assume responsibility for a $640,000 state loan that applied to the plant. In addition, the city signed a long-term lease with the building owner for the space housing the plant equipment. The current balance on this loan is $323,170, as of March 1, 2012. The city pays $33,333.33 per month ($400,000 per year) to lease the space that houses the plant.

There are no current plans to build additional plants. The city did expand the plant’s capacity in 2006 with the addition of a second chiller and boiler and piping extensions into lots 2 and 6 and the Westgate property. These plant improvements and piping extensions were funded by a $1 Million state energy department loan. The current balance on this loan is $785,060 as of March 1, 2012. There is excess capacity to serve significant future development near the Beaverton Central Plant.

The plant generally breaks even or has small positive cash flow. The plant currently operates at 30 percent capacity. Buildings at The Round are required to use the Central Plant for heating and cooling services, and buildings nearby The Round may connect to the plant as well. As more buildings are developed at The Round and the surrounding area, the more customers the Central Plant will have. Because of the economies of scale, the cost of servicing the additional customers will not be as great as the cost to service the existing customers, so revenues should increase with the addition of customers.

The major consideration for the city purchasing the Coldwell Banker Building (Metro / South Office Building) is financial. As stated in Agenda Bill 12055, the city owns and operates the Beaverton Central Plant, which is located in the Coldwell Banker Building. For consideration of the plant's assets and for occupying space in the building, the city pays $400,000 per year ($33,333 per month) to the owner of the Coldwell Banker Building under a space lease agreement, which began on June 3, 2005. This lease covers a period of 40 years ending on June 1, 2045.

As of March 1, 2012, the city's remaining obligation under the space lease is $13.3 million representing the period April 1, 2012, through June 1, 2045. If the city were to purchase the Coldwell Banker Building, this lease obligation would be eliminated thereby leaving the city in a net gain situation; spending $8,650,000 to eliminate a remaining $13.3 million future lease obligation and owning a 108,000 square-foot Class A office building. By not purchasing the building, the city will pay out the remaining $13.3 million over the remaining life of the lease and NOT OWN a 108,000 square-foot Class A office building.